Oil Extends Drop as Saudi Arabia Moves to Restore Vital Pipeline
Oil extended a decline on signs that supply disruptions in the Middle East are set to ease, with Saudi Arabia seeking to partially restore flows along a vital pipeline.
By Stephen Stapczynski
Sep 18, 2026 (Bloomberg) –At least two liquefied natural gas shipments transited the Strait of Hormuz this week as producers look for ways to increase flows to a market struggling with a lack of supply and surging prices.
A tanker that loaded at Qatar’s Ras Laffan export plant in late August appeared in the Gulf of Oman earlier this week, according to ship-tracking data compiled by Bloomberg, indicating it had passed through the contested waterway. The vessel wasn’t sending a signal when it traversed Hormuz, but jamming and interference is common in the area, complicating efforts to ascertain the exact location of ships.
Separately, another two LNG carriers were spotted doing ship-to-ship transfers off the coast of Oman this week, according to satellite images published by Copernicus Sentinel-2 that are only available after a delay.
The trickle of shipments indicate that Persian Gulf LNG producers are trying to get more fuel through Hormuz, to provide some relief to Asian and European buyers. Exports from the gulf have been at a virtual standstill since a Qatari tanker was attacked by Iran in early July. The lack of supply has sent spot prices to the highest level in more than three years, and they are at risk of rising further as the Northern Hemisphere winter approaches.
QatarEnergy didn’t respond to a request for comment.
Satellite images show that there have been at least three LNG ship-to-ship transfers off the coast of Oman since the middle of August. Such transfers have become common for oil tankers over the last few months, but they are far more rare for LNG, due to the technical challenges involved in keeping the fuel super-chilled during any switch.
Continued hostilities in the Middle East are pressuring LNG producers to test alternatives. Buyers in Pakistan and Bangladesh — dependent on gas via Hormuz — are closely monitoring the situation, as every shipment that gets through means they may not need to purchase a replacement from the expensive spot market.
Before the war about three cargoes of LNG passed through Hormuz each day. Qatari exports used to account for around a fifth of global supply.
© 2026 Bloomberg L.P.
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Facts Only
* At least two liquefied natural gas shipments transited the Strait of Hormuz this week.
* Producers are seeking ways to increase flows to a market struggling with supply shortages and surging prices.
* A tanker loaded at Qatar’s Ras Laffan export plant in late August appeared in the Gulf of Oman this week.
* Two LNG carriers were spotted doing ship-to-ship transfers off the coast of Oman this week via satellite images.
* Exports from the Persian Gulf have been at a standstill since a Qatari tanker was attacked by Iran in early July.
* Spot prices for gas have reached a level higher than in more than three years due to a lack of supply.
* At least three LNG ship-to-ship transfers off the coast of Oman occurred since mid-August.
* QatarEnergy did not respond to a request for comment.
Executive Summary
Liquefied natural gas shipments have transited the Strait of Hormuz this week as producers attempt to increase flows to markets facing supply shortages and high prices. This activity involves at least two LNG shipments moving through the waterway, indicating efforts by Persian Gulf LNG producers to deliver fuel to Asian and European buyers. Ship-to-ship transfers for LNG carriers off the coast of Oman have also been observed multiple times since mid-August, suggesting alternative logistics methods are being employed despite technical challenges related to keeping the cargo super-chilled.
The flow of shipments indicates a measured response to supply constraints, following a period where exports were nearly halted after an attack on a Qatari tanker in early July. Buyers dependent on gas from this route are monitoring these movements as alternatives might reduce reliance on volatile spot market prices. The situation is further complicated by ongoing hostilities in the Middle East, pressuring producers to seek alternative routes and logistics while demand remains high.
Full Take
The visible flow of energy through contested maritime chokepoints highlights a critical tension between geopolitical conflict and global energy market dynamics. The attempts by producers to move LNG through Hormuz represent an effort to navigate operational realities while mitigating the effects of external instability, specifically concerning supply scarcity. The fact that tankers are seeking alternative logistics, such as ship-to-ship transfers for LNG, suggests a pattern where physical constraints (like hostilities) force innovations in transport methods, even when those innovations introduce technical complications.
The focus shifts from simple supply to systemic vulnerability. When transit routes become subject to risk, the reliance on established commodity flows is fundamentally altered, creating a feedback loop where market volatility reinforces geopolitical pressure. The increased scrutiny placed on shippers navigating these waters—whether through jamming or physical transfers—underscores that control over physical logistics remains a crucial, if often unstated, element of geopolitical leverage. The dependence faced by downstream buyers in regions like Pakistan and Bangladesh further illustrates how localized maritime events translate into significant economic vulnerability for vulnerable actors dependent on energy supply chains passing through contested areas.
What mechanisms are put in place to ensure the reliability of these alternative transport methods when safety and operational control are paramount? How does the incentive structure shift when risk premiums associated with transit increase, forcing producers and consumers into non-standard operational procedures? If disruptions become the norm, what long-term structural shifts are necessary to decouple energy security from immediate geopolitical friction?
Sentinel — Human
The text exhibits the structure and density of professional journalism, focusing on verifiable maritime movements and geopolitical impact, suggesting a human journalistic origin.